Property Damage Assessment Flashcards
7 cards from real CALA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Property Damage Assessment flashcards as text
A homeowner's detached garage is destroyed by fire. The main dwelling is undamaged. Under a standard HO-3 policy, which coverage section applies to the garage?
Answer: Coverage B – Other Structures
Coverage B – Other Structures applies to structures on the residence premises that are separated from the dwelling by clear space, including detached garages.
When measuring roof square footage for an estimate, one 'square' of roofing material equals how many square feet?
Answer: 100 square feet
In roofing, one square equals 100 square feet of roof surface, which is the standard unit used when ordering and pricing roofing materials.
An adjuster finds that a burst pipe caused water damage to drywall, flooring, and personal property. Which step should be taken first after inspecting the loss?
Answer: Determine whether the insured mitigated the loss to prevent further damage
Policyholders have a duty to mitigate after a loss; the adjuster must verify that reasonable steps were taken to prevent further damage before calculating the full claim.
What is 'betterment' in the context of property damage claims?
Answer: A deduction applied when repairs restore the property to a condition better than its pre-loss state
Betterment is a reduction in claim payment when the repair or replacement leaves the insured in a better position than before the loss, such as replacing worn materials with new ones.
A commercial building adjuster needs to determine the building's insurable value. Which method calculates the cost to rebuild the structure at current prices without regard to land value?
Answer: Replacement cost new (RCN) approach
The replacement cost new (RCN) approach estimates the current cost to construct a building of like kind and quality, excluding land, which is the standard for property insurance valuation.
A homeowner files a claim for a tree that fell on her fence. The insurer determines the tree was diseased and the insured was aware of its condition. How does this affect the claim?
Answer: Negligence by the insured could trigger the policy's neglect exclusion
Most homeowners policies contain a neglect exclusion that can bar or reduce recovery when the insured knowingly failed to maintain property, which contributed to the loss.
What does the term 'scope of loss' mean in property damage adjustment?
Answer: A detailed itemization of all damaged items and the work required to restore the property
The scope of loss is the documented inventory of all damages, quantities, and repair or replacement actions needed to restore the property to its pre-loss condition.